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Wednesday, October 15, 2014

Ontario not set for electricity imports from Quebec

Ontario's Independent Electricity System Operator (IESO) and Ontario Power Authority (OPA) have issued a report on the prospects of replacing Ontario generators with contracted imports - with the focus being on imports from Quebec.

Ontario electricity planners have dumped cold water on the idea of importing big volumes of electricity from Manitoba and Quebec.
There is “limited opportunity” for large amounts of long-term imports to supply the Ontario market, says the report by the Independent Electricity System Operator and the Ontario Power Authority.
Importing from Quebec wouldn’t be cheap, the report says.
It estimates that it could cost up to $2 billion to build new lines between Quebec and Ontario in order to import 3,300 megawatts of power.
In addition, it says, Quebec would have to build new generating stations to supply the increased exports — and they would be more expensive than existing facilities.

The report won't come as a surprise to informed people, as emphasized by Quebec presenting incentives for industry to locate/grow by using it's legacy hydro assets to discount rates.

MONTREAL -- The Quebec government wants to use its energy surpluses to offer a discount on industrial electricity rates, but appears to have closed the door on giving residential clients a break.
Energy Minister Pierre Arcand and Jacques Daoust, the economic development minister, proposed a 20 per cent discount Tuesday on current hydro rates to encourage investment and new projects in the province.
Arcand said Quebec has had a reduction in its energy needs because of difficulties in the pulp and paper sector combined with increased supply.
The two ministers said the new industrial rate should generate tax spinoffs of more than $800 million for the government between 2015 and 2024.

Ontario is also encouraging more industrial consumption by adjusting rates to shift costs of the system to residential ratepayers - while taking about 50% more this year than last to fund demand reduction programs in the province. I've not seen a predicted "tax spinoff" benefit from the "Class A", or "Industrial Conservation Initiative". If you have the stomach to learn more on that, you might read Parker Gallant's fresh Consume less, no, no, consume more